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Page added on January 14, 2014
India keen on buying oil, LNG from Canada on long-term basis
Oil Minister M Veerappa Moily used the sidelines of the Petrotech 2014 conference to court energy ministers of hydrocarbon rich nations of UAE, Bahrain, Canada, Ecuador and Libya to not just seek oil and gas supplies but also look at acquiring assets.
Moily said India was seeking a long-term supply contract with Canada, a nation from where state-owned Indian Oil Corp (IOC) last November joined private refiners Reliance Industries and Essar Oil in importing oil.
“We are keen to engage with Canada for oil and gas and LNG opportunities,” he said. “We seriously consider Canada as a destination for investments by our national oil companies.”
While ONGC Videsh Ltd has set up a country office in Calgary to pursue investment opportunities, IOC and gas utility GAIL India are seeking opportunities to either invest in oil and gas fields including shale, or for sourcing crude oil and LNG.
“Currently, IOC is pursuing discussions for LNG off-take from Canada,” Moily said in discussions with Premier of Alberta Alison M Redford.
With about 60 per cent of its energy supplies coming from the Middle East, New Delhi wants to tap newer sources to expand its basket. Western sanctions against Iran has already led to a significant drop in oil sources from what once was India’s second biggest supplier. Unrest in Libya and Sudan too have disrupted supplies.
In his meeting with Libyan Oil Minister Abdulbari A Arousi, Moily pressed for the renewal of Bharat Petroleum Corp Ltd’s term contract for sourcing of crude oil. The contract fell due to unrest in the African nation.
In talks with UAE’s Energy Minister Suhail Mohmmed al Mazrouei, Moily said OVL, the flagship overseas acquisition firm, may be considered by the Middle-East nation for an onshore oil exploration license as well as offshore licence.
“OVL would be keen to partner Mubadala (an investment and development company supporting the diversification of the UAE) in jointly pursuing E&P assets in third countries,” he said.
To Bahrain’s Minister for Finance and incharge of national oil and gas authority Shaikh Ahmed bin Mohammed Al Khalifa, Moily said GAIL would be interested in participating in gas sector projects in Bahrain.
Also, Engineers India Ltd is keen on participating in the USD 6.5 billion Sitra refinery project.
3 Comments on "India keen on buying oil, LNG from Canada on long-term basis"
robertinget on Tue, 14th Jan 2014 2:34 pm
Tight shale oil ‘gluts’ in US markets will convince Canadians to look elsewhere for LT markets.Discounted crude to US
markets are eating away at profits.
The US is losing Nigerian, Mideast imports to sectarian violence.
Venezuela’s oil exports are slipping below what it needs to service China’s
loans.
Canada remains America’s chief trading partner mainly because of crude oil imports.
How much longer can Canada be expected to support America’s tired recovery?
Look for India, China to capture US oil
imports over time.. Such is America’s hubris over tight shale. If and WHEN
there’s no space for one more frack,
America will no longer be able to access
Alberta’s oil at any price.
robertinget on Tue, 14th Jan 2014 2:43 pm
As a side bar:
China invested 20 Billion in South Sudan’s oil infrastructure. When rebels captured vital oil fields they had no idea how to operate as all foreign workers had hightailed days before.
When forced to leave, rebels destroyed
equipment and trashed vital control centers.
Loses like this are not lost on Indian
and Chinese investment bankers.
Canada’s conservative government remains in power only if it continues to feed oil and gas company’s stakeholders.
rockman on Tue, 14th Jan 2014 3:57 pm
And not just Canadian oil
Reuters – India’s Reliance Industries is considering taking an 11 percent stake in one of Venezuela’s biggest petroleum projects, the energy major said on Tuesday, strengthening ties between the Latin American nation and its top Indian customer. Reliance, controlled by billionaire Mukesh Ambani, operates the world’s biggest refining complex in western India and derives nearly 80 percent of its revenue from refining. It is hunting for cheaper, heavier crude oil to feed its refineries. Venezuela has been Reliance’s top crude oil supplier, and in 2012 the company signed a 15-year deal to buy up to 400,000 bopd of heavy oil from its state-run oil company, PDVSA.
Dang furners…keep coming after “our” oil.